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Technology Stocks : BackWeb Technologies Ltd (BWEB)
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To: Probart who wrote (578)10/25/2000 11:58:59 PM
From: software salesperson  Read Replies (1) of 584
 
Conference call notes:

Beat street estimate of -.02 by coming in at -.01

100 new customers in quarter(above average)

1 M pc deal with packard bell

SAP partnership will account for 20% of 2000 rev.

Very positive call

Analysis:

What you have is a company selling at 35 X 2001 estimates and growing at 70%

Additionally, has no real competition

ibm and real network partnerships will kick in in 2001

it seems clear that they will be a logical acquisition candidate within the next 3 years, after they implement a single infrastructure for internet, fax, wireless(anticipated in 2001)

what they need to do is to keep reducing their sales and marketing expenditure ratio(which they have been doing gradually each quarter) , as they are not in line with where they should be. (suspect that they are paying sales reps too much; their field sales/se count seems ok for the # of accounts they are trying to cover)By increasing their partnership revenues, that ratio reduction will naturally occur by both increasing revenues and ,consequently, mgmt. lowering sales commissions. moreover, as the concept of push becomes more accepted in the market, and as the product supports more device types(as well as software platforms), sales reps will drive more revenue as well.

It is also clear that mgmt. knows exactly what needs to be done on all fronts(though they certainly have not verbalized a need to decrease the sales/marketing ratio.)

sales
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